Analysis Of The Influences Of Rural Households’ Credit On Their Loan Behavior

Rural Finance plays a very important role in the development of the rural economy, inthis paper, with the core issue of the rural finance, the borrowing and lending of ruralhouseholds, as the breakthrough point, study the borrowing and lending behaviors of farmersfrom the credit view, finding the key factors on the lending availability and scale, whichprovides the ideas and basis on market positioning and financial products innovating for thefinancial institutions.Combining the principles of establishes the credit evaluation indicators; this paperpresents a more scientific and perfect indicator system for evaluating the farmers’credit, onthe basis of study at home and abroad. The system not only involves the aspect of basicsituation of peasant household, the debt repayment ability, the operating status, the character,but also involves the social capital and village conditions. Due to these aspects are not easy todirect measure, and puts forward the 39 observation indexes to reflex the farmers’creditconditions.This paper sample data from the on-the-spot investigation, the questionnaire includestwo parts, farmer questionnaire and expert questionnaire, we send out altogether 250questionnaires in LinJin town and 207 available questionnaires were retrieved.Due to the different value of the dependent variables,this paper use different models tostudy the factors influencing farmers’lending availability and scale, through the empiricalanalysis by binary logistic regression ,tobit regression and Multiple Linear Regression, havedrawn some useful conclusions: first, householder’s health condition, the burden of bring upand support, family annual surplus, helpfulness and the whole credit conditions of village areall affect in the lending availability, from them we can find that rural formal finance give acomprehensive survey on whether offer loans for farmer. Second, householder’s marriage,householder who is the village or work in government department and Institution, familyannual surplus and helpfulness are all affecting the lending scale both in rural formal financeand rural informal finance.Third, householder’s health condition, years for planting the maincrops, Whether family member have gambling or drinking to excess and the whole creditconditions of village are all affecting the rural formal finance’lending scale. Last, the genderof householder and the level economic of village affect the rural informal finance’lendingscale.Finally, proposes some policy suggestions for improving the rural financial environment: strengthening the building of rural credibility system; regulating rural informal finance;exploiting new mortgage resources; making different policies for financial service; expendingthe products for rural consumption; encouraging the establishment of rural financialorganizations.